What is Umbrella Insurance Coverage?

umbrella insurance maine

When it comes to safeguarding your assets and future, insurance plays a pivotal role. One type of coverage that is often misunderstood but incredibly beneficial is umbrella insurance.

In this article, we’ll delve deep into what umbrella insurance is, what it covers, what it doesn’t cover, and why you might consider adding it to your insurance portfolio. We’ll also touch upon the specialized area of high net worth umbrella insurance.

Our team at Kasprzak Insurance is dedicated to keep you informed of all different types of coverage to keep you feeling secure. By the time you finish reading, you should feel comfortable knowing what umbrella insurance is and why you may need it.  If you are looking for an umbrella insurance policy in Maine, feel free to contact our team!

What is umbrella insurance?

At its core, umbrella insurance is a form of personal liability insurance. It provides an additional layer of security beyond the limits of your standard insurance policies, such as homeowners insurance or auto insurance. Think of it as an extra shield, stepping in when your primary insurance reaches its coverage limit.  Umbrella Insurance isn’t just for “bad weather” anymore, it is a policy that should be considered in many cases.

What does umbrella insurance cover?

Umbrella insurance offers broad coverage. Some of the scenarios it covers include:

  • Bodily injuries: If someone gets injured on your property or in an accident you’re responsible for.
  • Property damage: Covering the damage you cause to someone else’s property.
  • Certain lawsuits: Including libel, slander, false arrest, or malicious prosecution.
  • Landlord liabilities: If you’re a landlord and your tenant sues for damages.

What does umbrella insurance NOT cover?

While umbrella insurance provides a wide range of coverage, there are exclusions:

  • Your own personal property: Umbrella insurance is focused on liability, so it doesn’t cover damages to your assets.
  • Intentional or criminal acts: If you intentionally harm someone or commit a crime, your umbrella policy won’t cover the resulting damages.
  • Business-related losses: Unless you have a business-specific umbrella policy, typical personal umbrella insurance doesn’t cover business liabilities.
  • Contracts: Any liability you assume under a contract, unless you would have had the liability even without the contract.

Who should consider this type of insurance policy?

Who really needs this extra coverage? Let’s delve into who should consider umbrella coverage:

Homeowners: Owning a home can expose you to potential liability risks, from someone slipping on your icy sidewalk to a neighbor’s child getting injured in your backyard pool. An umbrella policy can offer protection beyond your homeowner’s insurance limits.

Vehicle Owners: If you’re found liable for a serious car accident where injuries or damages exceed your standard auto insurance limits, an umbrella policy can cover the excess amount.

Landlords: Owning rental properties can expose you to additional liability risks. For instance, if a tenant or their guest is injured on the property, you might be held responsible.

High Net Worth Individuals: Those with substantial assets have more at risk in a lawsuit. An umbrella policy can help protect these assets from being seized or liened.

Individuals with Certain Risky Hobbies: Do you love boating, skiing, or horseback riding? Activities like these can sometimes lead to accidents where you might be held liable for someone’s injuries or property damage.

People with High-Profile Careers: Professionals like doctors, lawyers, or public figures might be more prone to personal injury lawsuits, such as slander, libel, or false arrest claims. Umbrella insurance can offer coverage in these situations.

Pet Owners: If your pet causes harm or injury to someone, you could be held liable. Standard homeowners or renters insurance might have limits on liability coverage for pet incidents, making umbrella coverage a prudent choice for many pet owners.

Umbrella coverage isn’t just for the wealthy or those in high-risk situations. It’s for anyone who wants to ensure their assets and future earnings are protected from unforeseen events that could lead to substantial liability claims.

What is a high-net worth umbrella policy?

Individuals with significant assets or high earning potential often face greater risks of large lawsuits. A high net worth umbrella insurance policy is tailored for such individuals, offering even higher limits of protection. These policies often start where standard umbrella policies leave off, providing tens of millions (or even more) in liability coverage. They also might offer specialized coverages suited to the lifestyles and needs of high net worth individuals.

Best practices when shopping for umbrella coverage

Choosing the right policy can be a game-changer for your financial security. It’s crucial to pick a policy that aligns with your needs and gives you the peace of mind you’re looking for. Here are some top tips to guide you through the selection process:

Assess Your Risks: The first step is understanding your potential exposure. Do you own property? Do you frequently host gatherings or events at your home? Are there potential risks associated with your profession? Evaluate the various scenarios where you might be held liable.

Determine the Right Coverage Limit: While a $1 million umbrella policy might sound substantial, in the face of a significant lawsuit, it could be quickly exhausted. Depending on your assets and potential exposure, consider opting for higher limits. It’s a balancing act between what you can afford and how much protection you feel you need.

Understand the Policy Exclusions: As with all insurance policies, umbrella insurance has exclusions. Familiarize yourself with what’s not covered so there are no surprises down the line.

Consult an Agent: An experienced insurance agent, like us as Kasprzak, can provide personalized advice based on your unique circumstances. They can help you navigate the options and ensure you’re adequately protected.

Review Regularly: Your life and risks evolve over time. Maybe you’ve acquired more assets or your family has grown. It’s essential to review your umbrella insurance policy regularly, ideally annually, to ensure it remains aligned with your needs.

By following these tips and being diligent in your research, you can secure an umbrella insurance policy that not only protects your assets and future but also offers you the peace of mind you deserve.


In the world of insurance, umbrellainsurance stands out as a powerful tool for safeguarding your future. Whether you’re an individual wanting extra peace of mind or someone with high net worth looking for robust coverage, there’s an umbrella policy tailored for you. Feel free to contact me today at [email protected] or call me at 207-247-4959 ext. 115 if you are shopping for umbrella insurance in Maine.